GOLD

[ananda77]

Watch out for Butterflies blowing bubbles

...mania always the best reason to get the heck out of here...will see you at ~USD 600 (or nearby) -happily-

Kind Regards

[Jess9]

BOE seems set to "print money" after March 5th. Seems authority for this is being sought now.

Unbelievable! Gold/silver to go ballistic if this occurs.

[JBmurc]

BOE seems set to "print money" after March 5th. Seems authority for this is being sought now.

Unbelievable! Gold/silver to go ballistic if this occurs.

They want inflation NOW even if the savers of this world suffer.
paper money is only worth what another is willing to accept for it(just checkout the NZD THIS NOTE IS LEGAL TENDER FOR?? 20 peanuts..... going forward the USA,POMs etc only have Inflation as their last chance that or World War 3 ..compared to Gold & silver bullion papers only going to become more an more weaker in buying power of real assets IMHO exchanging paper for Gold & silver bullion will only become harder.
Great time to buy that house or company on tick as interest rates will be below true inflation soon

[Jess9]

yip, cheap cash for real assets equals wealth transfer in such an environment.

[George]

Correct me if wrong, but is this thread not similar to the oil one when
they were talking about $200 a barrel???

[JBmurc]

Correct me if wrong, but is this thread not similar to the oil one when
they were talking about $200 a barrel???

Yeah for sure both Oil an gold silver copper property etc etc are real hard assets $$$$ in turn are only worth the paper they are printed on But as long as the world believes the paper is real money it will hold an ever decreasing value as more an more is printed
Now add in the fact things like Gold silver Oil aren't infinite like paper and when you look into any true reserves of the above your see both 200bbl oil and 2000USD gold is just going to have to happen only thing we don't know is excatly when 2yrs or 20yrs time i guess it's more like how long will the population be fooled for before waking up.

[Aussie]

Correct me if wrong, but is this thread not similar to the oil one when
they were talking about $200 a barrel???

Good point George, in some ways I suppose it is. The truth is, no-one knows anything with 100% certainty. I am amazed at the price of oil, could the gold price drop by 70% in the very near future? I suppose anything is possible but one has to look at the facts and figure out the probability, which I think looking at the economic fundamentals is remote.

Regarding oil, I personally believe that we are experiencing a temporary price collapse that has been artificially "generated" on the US controlled NYMEX paper markets.

There is a huge contango at the moment between the paper price and the future physical price as witnessed by the massive number of tankers and holding facilities full of oil, that have been leased by none other than the Wall St. investment banks. US 60 Minutes recently did a great story on oil and how Morgan Stanley is now the biggest player in the oil business and is holding massive quantities in anticipation of higher prices later this year.

Oil consumption has declined with the global recession, but no-where near 70% as the current oil price would indicate. Whatever oil the west does not use, the developing world including OPEC nations themselves consume.

The fact that cap ex, oil rigs, exploration and development projects have been shutdown all over the world should be ringing alarm bells with regard to the world's ability to bring new supplies on-line in the coming months and years. This "mal-investment" will probably cause the price to go far higher later than it otherwise should.

And who has been the chief beneficiary of the collapse in oil? Looking around I see no one has benefitted more than the good 'ol US of A. Cheaper gas, stronger dollar . . . and at the same time they are achieving the poitical goals of breaking the economies of their "enemies" Mr. Putin and Chavez while keeping the OPEC nations from becoming too troublesome . . . nice job on a lot of fronts if you are an American policy maker.

[Aussie]

...mania always the best reason to get the heck out of here...will see you at ~USD 600 (or nearby) -happily-

Kind Regards

ananda77, gold is no where near any kind of mania yet - not even close. It hardly gets a mention in the mainstream media. It mostly gets ignored and the general public doesn't even know or understand it. In Europe and Asia there is a cultural and historical understanding of gold so they are far more predisposed to buy it.

But here in NZ, gold was was by far one of the best investments of 2008 with a +40% return in NZD yet was completely ignored. The financial press ignore it because they consider it a strange, speculative investment. To me, speculative wold have been keeping all my assets in NZD.

The fact is . . . once you buy physical gold, you EXIT THE BANKING SYSTEM. The establishment has a vested interest in keeping people out of gold and remaining in stocks, bonds, currencies and all things paper.

We may see a healthy correction back to the $920 - $930 are but the stage is set. With gold now trading higher IN STEP with the USD, any kind of re-evaluation of the USD by foreigners will see gold vault many hundreds of dollars from where it is right now. I seriously doubt we will never see $600 again.

[ananda77]

But here in NZ, gold was was by far one of the best investments of 2008 with a +40% return in NZD yet was completely ignored. The financial press ignore it because they consider it a strange, speculative investment. To me, speculative wold have been keeping all my assets in NZD.

...you could have had the same return simply being long in USD over the period...

...do not get me wrong, gold is an asset and should therefore be part of a balanced portfolio but other than that I prefer to buy and sell as I see fit...

kind Regards

[Dr_Who]

Can someone please post up the gold price and dow jones graph correlation from 1980-1990?

I want see if there how gold price reacted during the 1987 market crash and if there is a correlation.

Cheers